Where to Find the Highest Paying Cities for Gen Z | Smart Change: Personal Finances
Compared to millennials — who largely entered the workforce following the Great Recession — Gen Zers face a very different labor market and set of economic conditions.
Wages are rising rapidly and businesses are struggling to find and retain workers. Taken together, these conditions better position Gen Z to avoid many of the financial challenges that plagued millennials when they were the same age, such as underemployment and stagnating wages.
The researchers ranked the metros based on the cost-of-living-adjusted median annual salary for full-time Gen Zs.
The highest paying cities for Gen Z
Highest Paying Cities for Gen Z
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Generation Z, or Gen Z for short, is the generation that follows Generation Y and represents approximately 20% of the American population. The Brookings Institute’s definition of Generation Z is people born between 1997 and 2012, the oldest of whom are just starting their careers. While Gen Zers currently make up less than 5% of the full-time workforce in the United States, that number will grow rapidly in the coming decades.
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Generation Z will soon be a major economic force in the United States
Compared to millennials who largely entered the workforce following the Great Recession, Gen Zers face a very different labor market and set of economic conditions. Even though unemployment rates soared at the start of the COVID-19 pandemic, disproportionately impacting young workers, the economy has made great strides in its recovery since then, and the unemployment rate for all age groups has fallen below the levels seen ten years ago. . Wages are rising rapidly and businesses are struggling to find and retain workers. Together, these conditions better position Gen Z to avoid many of the financial challenges, namely underemployment and stagnating wages, that plagued millennials when they were the same age.
High unemployment rates have a disproportionate impact on young workers
Naturally, since older Gen Zers are just starting their careers, they tend to earn less than their older counterparts. According to data from the US Census Bureau, the national median full-time Gen Z salary was $26,000 in 2020, just over half the median salary of all full-time workers ($50,000). However, salaries are highly dependent on location. Factoring in the cost of living, Gen Zers in North Dakota and Iowa earned the most in 2020, at $33,681 and $32,950 respectively. Gen Zers in New England and other Midwestern states also earned high cost-of-living-adjusted salaries, due to a generally lower-than-average cost of living. Conversely, workers in Hawaii and New Jersey, two of the most expensive states in the country, earned the least after adjusting for the cost of living.
Gen Zers earn the most in North Dakota _ Iowa
To determine the highest-paying metropolitan areas for Gen Z, Self Financial researchers analyzed the latest data from the US Census Bureau and the US Bureau of Economic Analysis. Metro areas were ranked based on the cost-of-living-adjusted median annual salary for full-time Gen Zs. The researchers also calculated the unadjusted median annual salary of full-time Gen Zs, the unadjusted median annual salary of all full-time workers, and the share of Gen Z in the full-time labor force. Only the 100 largest metros were included in the analysis.
15. Minneapolis-St. Paul-Bloomington, MN-WI
Photo credit: Jon Bilous / Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $30,236
- Median annual salary for full-time Gen Z (actual): $31,200
- Median annual salary for all full-time workers (actual): $60,000
- Cost of living (compared to average): +3.2%
- Share of Generation Z in the working population: 4.4%
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14. Louisville/Jefferson County, KY-IN
- Median annual salary for full-time Gen Z (adjusted): $30,465
- Median annual salary for full-time Gen Z (actual): $28,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -8.1%
- Share of Generation Z in the working population: 5.4%
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13. Lancaster, Pennsylvania
Photo credit: arburkholder/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $30,465
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -1.5%
- Share of Generation Z in the working population: 8.1%
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12. Springfield, Mass.
Photo credit: Sean Pavone/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $30,630
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $54,000
- Cost of living (compared to average): -2.1%
- Share of Generation Z in the working population: 4.6%
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11. Salt Lake City, UT
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- Median annual salary for full-time Gen Z (adjusted): $30,700
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -2.3%
- Share of Generation Z in the working population: 6.7%
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10. Grand Rapids-Wyoming, MI
Photo credit: Photosbykaity/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $30,718
- Median annual salary for full-time Gen Z (actual): $29,100
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -5.3%
- Share of Generation Z in the working population: 4.7%
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9. Cincinnati, OH-KY-IN
Photo credit: Rosamar/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $31,024
- Median annual salary for full-time Gen Z (actual): $29,000
- Median annual salary for all full-time workers (actual): $51,000
- Cost of living (compared to average): -6.5%
- Share of Generation Z in the working population: 4.9%
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8. Harrisburg-Carlisle, Pennsylvania
Photo credit: Jon Bilous / Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $31,094
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -3.5%
- Share of Generation Z in the working population: 4.1%
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7. Milwaukee-Waukesha-West Allis, Wisconsin
Photo credit: Sean Pavone/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $31,272
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -4.1%
- Share of Generation Z in the working population: 5.5%
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6. Omaha-Council Bluffs, NE-IA
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- Median annual salary for full-time Gen Z (adjusted): $31,476
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -4.7%
- Share of Generation Z in the working population: 5.4%
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5. Indianapolis-Carmel-Anderson, IN
Photo credit: Rudy Balasko/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $31,677
- Median annual salary for full-time Gen Z (actual): $30,000
- Median annual salary for all full-time workers (actual): $50,000
- Cost of living (compared to average): -5.3%
- Share of Generation Z in the working population: 5.1%
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4. Boston-Cambridge-Newton, MA-NH
Photo credit: Sean Pavone/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $31,755
- Median annual salary for full-time Gen Z (actual): $35,000
- Median annual salary for all full-time workers (actual): $70,000
- Cost of living (compared to average): +10.2%
- Share of Generation Z in the working population: 3.2%
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3. Worcester, MA-CT
Photo credit: Sean Pavone/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $32,203
- Median annual salary for full-time Gen Z (actual): $32,400
- Median annual salary for all full-time workers (actual): $60,000
- Cost of living (compared to average): +0.6%
- Share of Generation Z in the working population: 3.9%
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2. Albany-Schenectady-Troy, NY
Photo credit: Sean Pavone/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $32,204
- Median annual salary for full-time Gen Z (actual): $32,300
- Median annual salary for all full-time workers (actual): $60,000
- Cost of living (compared to average): +0.3%
- Share of Generation Z in the working population: 3.5%
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1. Bridgeport-Stamford-Norwalk, Connecticut
Photo credit: Wendell Guy/Shutterstock
- Median annual salary for full-time Gen Z (adjusted): $37,884
- Median annual salary for full-time Gen Z (actual): $40,000
- Median annual salary for all full-time workers (actual): $72,000
- Cost of living (compared to average): +5.6%
- Share of Generation Z in the working population: 3.5%
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